Employee Vs. Independent Contractor

If you are a business owner and your business is growing you may be looking into hiring additional help.  The question then may be whether you should hire this person as an employee or as an independent contractor. Like most business owners, you will probably start by weighing those costs associated with each classification.  Hiring …

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Are You Ready for Your Year-end Inventory Count?

It’s one of the most dreaded days of the year for many of you…physical inventory day.  This can be a frustrating and time-consuming process with numerous obstacles, though with the proper planning you can make the physical inventory process run smooth and efficient. Inventory preparation – There is a lot you can do ahead of …

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Quickbooks – Tips to Reduce Errors

A significant portion of my career has been spent working with small or medium sized businesses that share two things in common.  They use QuickBooks for their accounting software and their accounting personnel are not trained on how to effectively use QuickBooks.  Without being trained on how to effectively use QuickBooks, the risk that errors …

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Big GAAP vs. Little GAAP – The Proposed Verdict is In!

As a follow up to the September 20th posting “Big GAAP vs. Little GAAP – Where are we at?” the Financing Accounting Foundation’s (FAF) Board of Trustees released its proposed plan last week to address constituents concerns over the standard-setting process for private companies.  The proposed plan calls for the establishment of a “Private Company …

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Accounting for property taxes

Real estate and personal property taxes can be a little tricky for some people to account for. For instance, in Arizona, taxes for the calendar year are generally due in two installments. The first installment for the first half of the year is due on October 1 and delinquent on November 1. The second installment …

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Compilations, Reviews, and Audits – What’s the Difference?

Banks and other interested parties are increasingly requesting financial statements prepared in accordance with generally accepted accounting principles (or other applicable financial reporting framework) that have either been compiled, reviewed or audited by an independent Certified Public Accountant.  There are varying degrees of service and reliability provided by a compilation, review or audit engagement so …

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The differences between GAAP, cash basis and modified cash basis of accounting

Generally Accepted Accounting Principles in the U.S. (GAAP) are just that – generally accepted. However, it’s not the only choice of accounting basis available to nonprofit and government organizations, and many organizations select another basis of accounting. There could be many reasons for presenting a different basis, one being that it may be more in …

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